I started to post an entry about IBM’s recent announcement regarding their LotusLive cloud computing software. But i quickly found myself hacking out an explanation on cloud computing. Then, i realized we’ll probably need to start with a quick break-down of the Software as a Service concept.
So, here goes… Software as a Service, put very simply, is the use of a website to perform functions that normally would be installed on your computer as a software application. The most commonly used example is web-based email. Most office workers use email through software programs like Outlook (or Eudora, or Lotus, etc.).
Outlook is a software application that is physically installed on your PC (at least it was when first launched. Now Microsoft has a pretty slick web-access version, known to most office drones as Outlook Web Access, or OWA). But the prescient founders of Hotmail thought a website could do a pretty good job at checking and sending emails too. So they created one of th first web-based email services. The response, as we know, was extraordinary. All of the sudden anyone with access to the Internet could get an email account. What was once available only to the corporate and academic worlds was suddenly available to the masses. The pricing model helped too. Today the concept of free email hardly sounds revolutionary. But in 1996 it was a BIG idea. Delivering the service over the web drove down operational costs while expanding its distribution to a global audience.
Over the past 10 + years this concept has matured. Slowly companies realized other, traditional software applications could be replaced with websites to perform the same functions. Plus, using a website to perform the job of a software application provides a few key advantages:
- Simplicity. No installation means no headache. If you simply go to a website to access your software you don’t need to install anything. You don’t have to worry about getting the right version for your operating system, or conflicts with other software on your machine.
- Mobility. Accessing your data over the web means you can do it anywhere. You don’t need your personal machine to do it. You can simply logon to your account from any machine in the world and, voila, all of your stuff is right there.
- Cost. The company providing the service does not have to create multiple versions of their software (one for each version of each operating system), nor does it need to produce and distribute countless installation discs.
The effect this concept has on small businesses is phenomenal. Today you can launch a company with nearly $0 spent on software. Almost every software tool you need has a web-based counterpart that can replace it. And with web services you can typically pay as you go. Not sure if you want a fancy sales force automation tool? That’s ok, use it for a month. If you don’t like it, don’t pay for it in month 2.
I’ll be following this post up with Part II: Cloud Computing, What the hell is it, and do i care? So, stay tuned for the riveting sequel…
Below is a quick list of some common software-as-a-service offerings. But there are dozens, if not hundreds of offerings in every category. If you have any recommendations for apps that are not on this list please add your suggestion in the comments.
Accounting:
NetSuite.com
FreshBooks.com
IntAcct.com
QuickBooksOnline.com
Sales Automation:
SalesForce.com
NetSuite.com
SiebelCRM - a service of Oracle
Project Management:
BaseCampHQ.com
Project.net
And for almost everything else:
Google Apps - look for the web powerhouse to ramp up its challenge to the Microsoft Office dominance via its Google Apps suite of common office software.
